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Depreciation
Accountancy
How come the depreciation is 39000, according to my calculation it should be 20000 can anyone please explain??
Answers (4)
Calculation of depreciation : 1.Balance b/d=730000 From that subtract the balance b/d amount of machine sold(600000-60000=540000) and calculate dep on that amount [(730000-540000)*10%=19000] 2.Calculate dep on machine bought for 6 month (400000*10%*6/2=20000) 3.Add 1&2 Depreciation=19000+20000=39000.
